conditional

Under what conditions can Aplus make suggestions and give mandatory instructions regarding the operation of the franchised business?

Aplus Franchise · 2024 FDD

Answer from 2024 FDD Document

While this Agreement is in effect, Franchisor shall lend to Franchisee one digital or paper copy of the Manual. The Manual shall be treated as an integral and material part of this Agreement. The Manual sets forth procedures, standards, methods, specifications, and requirements for the operation of the APLUS Store and your Franchised Business. Franchisee shall conduct the Franchised Business in strict accordance with the provisions set forth in the Manual. The Manual may consist of one or more separate manuals and other materials as designated by Franchisor and may be in written or electronic form. The Manual shall, at all times, remain the sole property of Franchisor and shall promptly be returned to Franchisor upon expiration or termination of this Agreement, and Franchisee shall destroy any copies (electronic or otherwise) of the Manual in its possession.

Franchisor has and will continue to engage with designated third parties in its sole discretion to provide Franchisee with operational support, including but not limited to merchandising, promotional, marketing, and other functions on Franchisor's behalf (each, a "Designated Service Provider"). Franchisor shall be available to render advice, discuss problems and offer general guidance to Franchisee during normal business hours by telephone, e-mail, facsimile, newsletters, and other methods. Franchisor does not currently charge for this service; however, Franchisor retains the right to charge a fee for this service should Franchisee be deemed by Franchisor to be utilizing this service too frequently or in an unintended manner. Franchisor's advice or guidance to Franchisee relative to prices for products and services that, in Franchisor's judgment, constitutes good business practice is based upon the experience of Franchisor and its franchisees in operating a Franchised Business and an analysis of costs and prices charged for competitive products and services. Franchisee shall have the right to determine the prices to be charged by the Franchised Business; provided, however, that Franchisor shall have the sole right to: (1) set maximum retail prices, subject to state or federal law, for certain convenience store products; (2) set prices for certain products as part of Franchisee's participation in Programs; and (3) determine the prices to be charged for products sold through the APLUS and/or SUNOCO Internet site, including products sold to persons identified as customers of the Franchised Business.

Franchisor or Franchisor's representative shall make periodic visits, which may be announced or unannounced, to the Franchised Business for the purposes of consultation, assistance, and guidance with respect to various aspects of the operation and management of the Franchised Business. Franchisor may

Franchisee shall keep the Franchised Business open for business for the number of hours and days per week as described on Attachment 1. Failure to cause the APLUS Store to be open for business during the hours and days prescribed by Franchisor is a material breach of this Agreement. Failure to operate at least the number of hours as described on Attachment 1, unless prohibited by law, will result in an administrative fee equal to an additional one percent (1%) of the monthly Royalty Fee per day until the Franchised Business is open the minimum number of hours.

Franchisee is required to obtain licenses and certifications as Franchisor may specify, which Franchisee shall obtain within the time period specified by Franchisor.

You must conduct grand opening advertising ("Grand Opening Advertising") in the amount and manner that we require, as specified on the Summary Page. The minimum amount you must spend on Grand Opening Advertising is $3,000.00, and you may spend more than the minimum.

Source: Item 23 — RECEIPT (FDD pages 68–302)

What This Means (2024 FDD)

According to Aplus's 2024 Franchise Disclosure Document, Aplus provides guidance and mandatory instructions through several mechanisms. The cornerstone of operational guidance is the Manual, which contains procedures, standards, methods, specifications, and requirements for running the Aplus store. Franchisees must operate their businesses in strict accordance with the Manual's provisions. Aplus also offers general advice and guidance during normal business hours via various communication methods.

Aplus can set maximum retail prices for certain convenience store products, determine prices for products sold through the Aplus and/or SUNOCO Internet site, and set prices for certain products as part of the Franchisee's participation in Programs. Franchisees are required to keep the Franchised Business open for the number of hours and days per week as described on Attachment 1. Failure to do so results in an administrative fee equal to an additional one percent of the monthly Royalty Fee per day until the Franchised Business is open the minimum number of hours.

Furthermore, Aplus representatives may make periodic visits to the Franchised Business for consultation, assistance, and guidance. Franchisees must also conduct grand opening advertising in the amount and manner that Aplus requires, with a minimum spend of $3,000. Franchisees are also required to obtain licenses and certifications as Aplus may specify, within the time period specified by Aplus.

These controls allow Aplus to maintain consistency and standards across all franchise locations, which is a common practice in franchising. Prospective franchisees should carefully review the Aplus Manual and understand the required operating procedures, opening hours, and marketing obligations to ensure they can comply with Aplus's standards.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.